Oil prices jumped for a second consecutive day Thursday as the supply of crude, for months a secondary consideration to rapidly declining demand, appeared to gain force as a market mover.
Traders have followed economic data that suggested producers could not cut production fast enough to match falling demand.
The government reported that imports over the past two weeks are more than 10 percent below the prior month’s average, hinting that massive OPEC cuts might finally have reached the U.S. market.
Light, sweet crude for April delivery jumped 6.4 percent, or $2.72, to settle at $45.22 a barrel on the New York Mercantile Exchange.
Many analysts think the uptick in prices is temporary and that the severe global economic downturn will depress prices further.
Alaron Trading analyst Phil Flynn said prices could dip again into the $30 range with inventories near record levels.
And based on past behavior, analysts remain skeptical that OPEC can stick to output cuts with the budgets of member countries under severe strain.
Retail gasoline prices have traveled in the opposite direction of oil for weeks, and Thursday was no different.
Prices at the pump dropped Thursday to a national average of $1.882 per gallon, down about a penny overnight, according to auto club AAA, the Oil Price Information Service and Wright Express.
Denver prices dropped 1.5 cents Thursday to $1.769 from $1.784 Wednesday.
